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olga_2 [115]
3 years ago
14

QUESTION 1 Buchanan Corp. forecasts the following payoffs from a project: Outcome Probability of Outcome Assumptions $ 1,100 25

% pessimistic 2,300 55 % moderately successful 5,800 20 % optimistic What is the expected value of the outcomes?
Business
1 answer:
Lorico [155]3 years ago
5 0

Answer:

$2,700

Explanation:

Calculation for the expected value of the outcomes

Using this formula

Expected value=respective outcome*Respective probability

Let plug in the formula

Expected value=(0.25*1100)+(0.55*2300)+(0.20*5800)

Expected value=$275+$1,265+$1,160

Expected value=$2,700

Therefore the expected value of the outcomes will be $2,700

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